Albuquerque-based Ellis Entertainment, LLC has purchased Ellis Park Racetrack in Henderson, Kentucky for $11 million from its current owner, Saratoga Casino and Hospitality Group.
The transaction was announced after the Kentucky Horse Racing Commission issued a license to Ellis, a subsidiary of Laguna Development Corporation, which is the economic development arm of the Pueblo of Laguna in New Mexico.
Kevin Greer, vice president and chief operating officer of LDC, said in the release: “We are both honored and excited for the opportunity to purchase Ellis Park, one of Kentucky’s oldest and most revered racetracks.” Greer added, “We appreciate the knowledge and support the Kentucky Horse Racing Commission has provided us while we prepare to restore Ellis Park to its rightful place as one of the Bluegrass State’s premier racing facilities.”
LDC formed Ellis Entertainment in February, specifically to manage the property. LDC operates the pueblo’s three casinos in New Mexico, including its Route 66 Casino Hotel. This is its first entrée into the commercial gaming industry.
Saratoga will operate the facility during the 2019 racing season through a management agreement with the buyers. Daniel Gerrity, Saratoga’s president said in a release: “We remain committed to the upcoming racing season at Ellis Park and ensuring that it is one of the most successful the property has seen in years. He added, “We look forward to working closely with Ellis Entertainment in the coming months to ensure a seamless transition of ownership.”
Ellis says it plans to invest $55 million to expand the facility, improve refreshment offerings and refurbish the grandstand and barn. It will also add historical horse racing machines.
The renovations, including the addition of historical racing machines, are expected to be completed in time for the 2020 racing season, according to a report in BloodHorse.
In a separate but related development, the Kentucky Supreme Court has agreed to give a fast-track appeal on the question of whether historical racing machines are legal in the Bluegrass State.
Last October a Franklin Circuit Court judge ruled that wagering manufactured by Exacta Systems historical racing machines “are structured to operate in accordance with the pari-mutuel system of wagering.” If that ruling is upheld it would mean that the machines now operating in several racetracks in the state are not gambling devices, and thus are legal.
Kentucky does not allow casino gaming, but the Kentucky Horse Racing Commission has allowed racetracks to deploy the historical racing machines, which it says are not a form of gambling.
The Supreme Court has in the past sidestepped ruling on this issue. The last time it was before the state’s high court, in 2014, it remanded the case back to a circuit court.
This time it has agreed to decide the issue. The Supreme Court plans to hear briefs from both sides of the issue although a decision is not expected until next year.
Besides Ellis Park, Kentucky Downs, the Red Mile harness track, Derby City Gaming and Churchill Downs all operate the machines.
